If Tesla becomes anywhere near successful, the oil industry (I am talking about the multi-trillion dollar industry that controls the world and starts wars as it wishes) will not just sit there and take it. Investing in Tesla is betting against a multi-trillion-dollar industry that practically owns the world.
It's simple.. The oil industry learned a long time ago that they can make just as much profit by cutting back on production.. Think OPEC oil embargo during the 70's.. They will collectively cut back as demand decreases and profits will be maintained.. This means the price of oil will continue to rise.. Gas will only go up.. and there will still be plenty of demand for gas and oil products.. ICE vehicles aren't going away any time soon..
When demand eventually fades away they will diversify.. Look at Dubai, they are investing to make themselves into a tourist/business mecca in anticipation of their oil to run out.. Look at the tobacco companies diversifying into other industries..
What do you think they can do to stop it....? How do "they" Oil and Gas industry stop me a private citizen from buying an EV.....?
All their power, money and influence will be futile if the consumer bails on their product.
Geez, another conspiracy theorist. Doesn't the "big oil" conspiracy get cancelled out by the way so many greens have their hooks in politicians and government, which are much bigger and more powerful? Look at subsidies for home solar and California's "high speed" rail scam. They can't be killed no matter how wasteful, ineffective or, after the deceit of the high speed rail supporters was exposed, how unpopular. The politicians wouldn't even allow a vote and I can tell you that people on both sides of the aisle are against it with the exception of those who directly profit from it's construction.
Don't forget the conspiracies relating to Tesla stock-so many conspiracy theories on both sides about manipulation that surely they cancel each other out...
Fair point, but what can they do exactly to stop the EV movement should it actually start to take off. I'm not talking 20,000 to 40,000 Model S / X sales, but what if GM and Tesla started to move 100,000 or even 200,000 worth of Gen III type cars...?
Gas demand would start steadily dropping while we keep upping Oil/Gas production and all the percieved power of the Oil/Gas business is trapped in the free market place of supply and demand.
I don't see how they physically stop the consumer from making a free choice to ditch our ICE cars. I suppose Gas would drop to $2.50 a gallon and it would become a classic "Tug of War" between EV and ICE with us the consumer getting the freedom to finally have real choice about what we buy/drive.
The oil industry can shift to making more plastics, asphalts n' such and get into making solar panels etc. When the masses realize there's another way and it becomes affordable, the shift will happen in a big way. We have treated our air as a sewer for far too long.
The oil companies can invest in Tesla ;-)
You bet I am betting against the oil industry. Technically is where the world is turning to. I remember when I sold pager stock and starting buying stock in cell phones.
Sentiment: Strong Buy